On the 1 November 2003, the BoE Emerging Focus Fund, FTNIB Emerging Companies Fund and the Nedbank Entrepreneur Fund merged to form the Nedbank Entrepreneur Fund. The history of the Nedbank Entrepreneur Fund has been retained. This fund is part of the Active Return Range.

During the third quarter of 2003, the Nedbank Entrepreneur Fund delivered an extremely satisfactory performance, which placed it well ahead of its peers in the Equity Smaller Companies unit trust category. Over a one-year period, the fund remains in first position with a return of 34.9%. The All Share index gained 7.9% in the quarter, the Mid Cap index gained 10.6% and the Small Cap index gained 15.3%.

The fund continues to deliver good performance with the lowest volatility in its sector. It is also less volatile than the average general equity unit trust, mainly as a result of the lower exposure to rand hedge type shares.

The fund manager's still believe that the mid/small cap sectors, despite their substantial outperformance of the ALSI 40, offer attractive investment opportunities. The continued rand strength also benefits these sectors relative to the ALSI 40.

The fund remains well positioned, with a weighted historic price earnings multiple and dividend yield of 8.5 times and 4% respectively. The weighted market capitalisation of the fund is approximately R2.1bn.

During the quarter the fund delivered an absolute performance of 10.9%, ranking third in the Equity Smaller Companies unit trust category. The fund outperformed its peers, where the mean performance was 9.6%. Th e All Share index gained 9.7% in the quarter, the Mid Cap index 13.4% and the Small Cap index 12.5%.

The fund continues to deliver good performance with lower volatility than general equity unit trusts, mainly as a result of its lower exposure to rand hedge type shares. This is contrary to the market perception that an investment in a Small/Mid cap unit trust is more risky than an investment in a General Equity Unit Trust. In addition, the fund 's focus on absolute performance is borne out by the Micropal performance figures, where the fund has not delivered negative performance over any time -period (5 yrs, 3 yrs, 2 yrs, 1 yr, 6 months, 3 months and 1 month).

The eight shares in the fund, which appreciated by more than 20% include Naspers, Uniserv, Afrox Healthcare, Astral, Supergroup, Foschini , Ellerines and Pepkor. No shares lost more than 10%.

The fund remains well positioned, with a weighted historic price earnings multiple and dividend yield of seven times and 4% respectively. In addition, the fund's exposure to counters whose earnings are likely to come under pressure as a result of the strong rand, is limited.

Nedcor Retail Investments have adopted the strategy of outsourcing the investment management of their unit trust funds on a "best of breed" basis, either within the wider Nedcor group where performance and skills substantiate this, or to third-party asset managers.

Alistear Lea, previously of FT NIB and now of Quaystone, who has successfully managed the Nedbank Entrepreneur Fund will continue to do so.

During the first quarter of 2003, the fund delivered excellent absolute performance, placing it 1st in the Equity Smaller Companies unit trust category.

After a particularly strong fourth quarter of 2002, several counters lost significant ground during the first quarter of 2003. Most of the share price declines were as a result of the continued strong currency. The fund was partly protected by its large cash holding, which has arisen primarily as a result of the cash offers for shareholdings in Ozz and Wiphold, the combined weighting of which was some 7% in the fund. Ordinarily, the fund would seek to hold about 10% of the total fund in cash.

The large share price declines and the large cash holding presents an opportunity for the fund to invest in quality companies at attractive prices.

The fund remains well positioned, with a weighted historic PE multiple and dividend yield of 6.8 times and 4.2% respectively, the most attractive levels in a while.

During the fourth quarter of 2002 the fund delivered an absolute performance of 13,56%, placing it first in the equity smaller - companies unit trust category. The fund outperformed its peers, where the mean quarterly performance was 10,17%. The all share index lost 2% in the quarter.

During the quarter seven counters held by the fund delivered performance of over 20%. The most significant contributors to fund performance came from moves in Wiphold (+34%), Trencor (+36%), Group 5 (+45%), Uniserv (+24%), Rebserve (+27%), Naspers (+24%) and Wilson Bayly (+20%).

No counters fell by more than 20%. However, three counters fell by more than 10%, namely Investec plc (-10%), Glenrand MIB (-11%) and Gencor (-11%).

The fund remains well positioned, with a weighted historic PE multiple and dividend yield of 7,4 times and 3,7% respectively.